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The single most load-bearing PRIMARY ruling in this whole corpus, stated by the body with the widest cross-madhab standing in the Muslim world: the…

The single most load-bearing PRIMARY ruling in this whole corpus, stated by the body with the widest cross-madhab standing in the Muslim world: the International Islamic Fiqh Academy of the Organisation of Islamic Cooperation (OIC), Resolution No. 10 (10/2), 'Rulings on Usury-based Bank Transactions and Dealing with Islamic Banks' — adopted at the Academy's 2nd session in Jeddah, Saudi Arabia, 10-16 Rabi' al-Awwal 1406H (22-28 December 1985). Its operative FIRST clause holds, verbatim: 'Any increase or interest on a matured debt in exchange for an extension of the maturity date, and in case the borrower is unable to pay and the increase (or interest) on loan at the inception of its agreement are both forms of usury, which are therefore prohibited in Shariah.' In plain terms: interest stipulated at the inception of a loan — the exact mechanism of a conventional bank loan or mortgage — is riba and is prohibited; so too is the classic pre-Islamic riba al-jahiliyyah of adding to a debt in return for more time. Crucially the Academy does not stop at prohibition: its SECOND clause names the way forward — 'An alternative that ensures cash flow and financial support for economic activities in a form acceptable to Islam is trading with each other in conformity with Shariah provisions' (i.e. real asset-based trade, the murabaha/ijara/musharakah family this corpus documents) — and its THIRD clause calls on 'the governments of Muslim countries to encourage financial institutions that operate in accordance with the principles of Shariah ... so that a Muslim will not have to live in a contradiction between the requirements of his faith and the realities of life.' A second, independently-worded source (the Institute of Islamic Banking and Insurance) confirms the same resolution, session and date, translating the core clause as 'Any excess or profit on a loan for a deferred payment when the borrower is unable to repay it after the fixed period and similarly any excess or profit on a loan at the time of contract are both forbidden as riba in the Shari'ah.'

What this source says

Almost every other entry in this corpus — the contracts (murabaha, ijara, salam, istisna, diminishing musharakah), the prohibitions (gharar, maisir), the usul doctrines (qiyas, maslaha, sadd al-dhara'i, 'urf) — ultimately rests on one prior claim: that the interest charged by a conventional bank is riba, and that riba is forbidden. This article documents the primary ruling that states that claim with the widest institutional authority available in the modern Muslim world. It comes from the International Islamic Fiqh Academy, the collective-ijtihad body of the Organisation of Islamic Cooperation (OIC), whose resolutions carry weight precisely because they are the considered, cross-madhab, cross-national judgement of assembled senior scholars rather than the opinion of any single jurist or school. The ruling is Resolution No. 10 (10/2), 'Rulings on Usury-based Bank Transactions and Dealing with Islamic Banks', adopted at the Academy's 2nd session in Jeddah, Saudi Arabia, over 10-16 Rabi' al-Awwal 1406H (22-28 December 1985). It has three operative clauses, and it is worth reading each in its own words. The FIRST clause is the prohibition itself, stated verbatim: 'Any increase or interest on a matured debt in exchange for an extension of the maturity date, and in case the borrower is unable to pay and the increase (or interest) on loan at the inception of its agreement are both forms of usury, which are therefore prohibited in Shariah.' Unpack the two limbs it names. The first limb is the classical riba of pre-Islamic Arabia — riba al-jahiliyyah — where a lender says to a borrower who cannot pay on time, 'extend the term and I will add to the debt.' The second limb is the one that reaches the entire modern banking system: 'the increase (or interest) on loan at the inception of its agreement.' That is a precise description of a conventional bank loan or mortgage — money lent today on the stipulated condition that more money is returned tomorrow, the increase fixed at the very moment the contract is signed. The Academy rules both to be 'forms of usury, which are therefore prohibited in Shariah.' There is no hedge, no 'unless the rate is low', no 'unless it is a productive loan': the increase stipulated at inception is riba, full stop. The SECOND clause matters just as much, because a prohibition without a path is a dead end, and Islam does not leave one here. The Academy states the alternative directly: 'An alternative that ensures cash flow and financial support for economic activities in a form acceptable to Islam is trading with each other in conformity with Shariah provisions.' This is the theological hinge of the entire riba-free-finance project — the Qur'anic contrast between selling and usury ('Allah has permitted trade and forbidden riba') rendered as institutional policy. The way to finance a home, a business, or a purchase without interest is not to lend money at a profit but to TRADE: to buy and sell real assets, to share in real risk and real return. Every contract this corpus documents — the cost-plus sale (murabaha), the lease (ijara), the partnership (musharakah and its diminishing form), the forward and manufacturing sales (salam, istisna) — is an instance of exactly this clause: trade in conformity with Shariah, standing in place of the forbidden loan-at-interest. The THIRD clause is the one that speaks most directly to a Muslim living in Australia, Britain, Canada or the United States today. The Academy 'emphasizes the call to the governments of Muslim countries to encourage financial institutions that operate in accordance with the principles of Shariah, in order to meet the needs of Muslims, so that a Muslim will not have to live in a contradiction between the requirements of his faith and the realities of life.' Read that final phrase carefully, because it answers the most human objection to this whole undertaking. The Academy is not naive about the difficulty; it explicitly acknowledges the tension between 'the requirements of his faith and the realities of life' — the very tension a Muslim feels when a halal mortgage is scarce or costs more. Its response is not to dissolve the prohibition to relieve the tension (that would be the rukhsah-abuse this corpus warns against), but to demand that the INSTITUTIONS change so the believer does not have to. The obligation runs to the system, not away from the ruling. That is why building and choosing genuinely Shariah-compliant finance is framed here as a communal duty, not a private preference. A second, entirely separate source confirms the resolution independently — important, because a primary text read in translation should never stand alone. The Institute of Islamic Banking and Insurance, citing the same Academy and the same 2nd Session in Jeddah of December 1985, renders the core ruling in its own words: 'Any excess or profit on a loan for a deferred payment when the borrower is unable to repay it after the fixed period and similarly any excess or profit on a loan at the time of contract are both forbidden as riba in the Shari'ah.' The wording differs — 'excess or profit on a loan' rather than 'increase or interest' — but the two limbs and the verdict are identical: interest at the inception of a loan, and increase on a debt for more time, are both riba, both forbidden. When two independently-worded translations of the same resolution converge on the same two limbs and the same prohibition, the substance is secure even though the exact English phrasing is a translator's choice. Two honest limits belong on this entry. First, this is an English translation of a resolution issued in Arabic; the load-bearing quotes are verified verbatim across two fetches and cross-confirmed by a second source, but the original binding text is the Arabic, and a translation is always an approximation of it. Second, this single resolution is not the Academy's only word on the subject — later OIC resolutions address bank deposits, contemporary financial instruments and organised tawarruq in more detail — but those are separate texts and are deliberately NOT quoted here, because they were not fetched and verified verbatim for this entry. What this article asserts is exactly what these two sources say and no more: that the OIC Islamic Fiqh Academy, in 1985, ruled interest-at-loan-inception and increase-on-debt-for-delay to be riba and prohibited, named Shariah-compliant TRADE as the alternative, and called on states to build the institutions that make faithful finance possible. That ruling is the foundation the rest of this corpus is built on.

Wording inside quotation marks is quoted from the source. The rest is this notebook’s summary of it — read the original before relying on it.

Provenance

Compiled from: Compiled from two genuinely different sources cross-read 2026-07-07: [1] the PRIMARY resolution page of the International Islamic Fiqh Academy (OIC), 'Resolution No. 10 (10/2): Rulings on Usury-based Bank Transactions and Dealing with Islamic Banks' (iifa-aifi.org, English), for the resolution number/title, the session (2nd), city (Jeddah) and dual date (10-16 Rabi' al-Awwal 1406H / 22-28 December 1985), and the verbatim First/Second/Third operative clauses; and [2] the Institute of Islamic Banking and Insurance 'Shari'ah Rulings' page (islamic-banking.com), for a second, independently-worded translation of the same resolution's core ruling ('Any excess or profit on a loan for a deferred payment when the borrower is unable to repay it after the fixed period and similarly any excess or profit on a loan at the time of contract are both forbidden as riba in the Shari'ah') plus the confirming session/date. IIFA page re-fetched with a tightened prompt and returned identical wording character-for-character; source [2] cross-confirms the same session, city and 22-28 December 1985 date independently. Cross-confirmed.
Source: PRIMARY RULING (number/title, session, city, dual date, and the verbatim First/Second/Third operative clauses) from [1] the International Islamic Fiqh Academy (OIC), 'Resolution No. 10 (10/2): Rulings on Usury-based Bank Transactions and Dealing with Islamic Banks' — 2nd session, Jeddah, Saudi Arabia, 10-16 Rabi' al-Awwal 1406H (22-28 December 1985) — (https://iifa-aifi.org/en/32234.html), fetched, read AND re-fetched 2026-07-07 with the re-fetch returning IDENTICAL wording character-for-character. VERBATIM CLAUSES: FIRST 'Any increase or interest on a matured debt in exchange for an extension of the maturity date, and in case the borrower is unable to pay and the increase (or interest) on loan at the inception of its agreement are both forms of usury, which are therefore prohibited in Shariah'; SECOND 'An alternative that ensures cash flow and financial support for economic activities in a form acceptable to Islam is trading with each other in conformity with Shariah provisions'; THIRD 'The Academy emphasizes the call to the governments of Muslim countries to encourage financial institutions that operate in accordance with the principles of Shariah, in order to meet the needs of Muslims, so that a Muslim will not have to live in a contradiction between the requirements of his faith and the realities of life.' INDEPENDENT CONFIRMATION (same resolution, same 2nd Session Jeddah December 1985, independently-worded translation of the core ruling: 'Any excess or profit on a loan for a deferred payment when the borrower is unable to repay it after the fixed period and similarly any excess or profit on a loan at the time of contract are both forbidden as riba in the Shari'ah') from [2] the Institute of Islamic Banking and Insurance, 'Shari'ah Rulings' (https://islamic-banking.com/shariah-rulings/), fetched and read 2026-07-07. Two genuinely DIFFERENT sources cross-read; the resolution's identity (session/city/date) and its core two-limb prohibition cross-confirm across both. NO fabrication: no madhab-by-madhab tally, no Qur'an/hadith number, no OTHER resolution number, and no market/AUM figure is asserted — only what the two fetched pages state verbatim.
School / basis: Cross-madhab / collective-ijtihad (the International Islamic Fiqh Academy of the OIC is a supra-madhab body of assembled senior scholars; its resolutions represent collective ijtihad rather than a single school's position). Resolution No. 10 (10/2), 2nd session, Jeddah, 10-16 Rabi' al-Awwal 1406H / 22-28 December 1985. Operative rulings, verbatim: FIRST — 'Any increase or interest on a matured debt in exchange for an extension of the maturity date, and in case the borrower is unable to pay and the increase (or interest) on loan at the inception of its agreement are both forms of usury, which are therefore prohibited in Shariah'; SECOND — 'An alternative that ensures cash flow and financial support for economic activities in a form acceptable to Islam is trading with each other in conformity with Shariah provisions'; THIRD — the call to 'the governments of Muslim countries to encourage financial institutions that operate in accordance with the principles of Shariah ... so that a Muslim will not have to live in a contradiction between the requirements of his faith and the realities of life.' Load-bearing for THIS site as the CORNERSTONE primary ruling under every contract and prohibition the corpus documents: it establishes at the highest available institutional authority that interest stipulated at a loan's inception (conventional bank interest / mortgage interest) is riba and prohibited, names Shariah-compliant TRADE (the murabaha/ijara/musharakah family) as the alternative, and frames building/choosing halal institutions as a communal obligation on states, not a private preference. Presented faithfully to the resolution's actual scope: the specific madhab breakdown, any Qur'an/hadith number, and any OTHER OIC/AAOIFI resolution number (e.g. on bank deposits or organised tawarruq) are deliberately NOT asserted, since none were verified verbatim in the two fetched sources; only the two-limb ruling, the trade alternative and the governments-call are claimed.
Original: https://iifa-aifi.org/en/32234.html
Captured: 2026-07-07
Added: 2026-07-07
Trust: Primary or near-primary source with a stable public URL.

Compiler’s note

The corpus's CORNERSTONE primary ruling and its SECOND article anchored on a genuine PRIMARY OIC / International Islamic Fiqh Academy resolution read verbatim — following bay-al-wafa (round-103), which first confirmed the IIFA English resolution index is fetchable. This run took the exact next lever the prior run named ('ANOTHER fetchable-verbatim IIFA/OIC resolution now that the IIFA English resolution index is confirmed reachable') and spent it on the single most load-bearing ruling the corpus still lacked as a PRIMARY source: the OIC Fiqh Academy's foundational judgement that conventional bank interest is riba. WHY THIS ONE: every contract/prohibition/usul article in the corpus presupposes 'bank interest = riba = forbidden'; that premise was documented only via national/school sources (Pakistan FSC 2022, AMJA US/CA fatwas) and via the general prohibition, never via the OIC Academy's own supra-madhab resolution. Resolution No. 10 (10/2) supplies it at the widest available institutional authority. Grep-confirmed no dup before writing: `ls content/articles | grep -iE 'iifa|oic|resolution-10|bank-interest|usury'` matched nothing; distinct from pakistan-fsc-riba-judgment (a national court), amja-us / amja-canada (single-body fatwas), and the gharar/maisir/tawarruq entries. TWO genuinely different sources cross-read + IIFA re-fetched returning identical wording: [1] IIFA/OIC primary resolution page (iifa-aifi.org/en/32234.html) — the number, title, 2nd session, Jeddah, 10-16 Rabi' al-Awwal 1406H / 22-28 December 1985, and verbatim First/Second/Third clauses; [2] Institute of Islamic Banking and Insurance 'Shari'ah Rulings' (islamic-banking.com/shariah-rulings) — independently-worded translation of the same core ruling + confirming session/date. THE RIBA VERDICT IS DIRECTLY SOURCED, NOT REASONED — the Academy itself calls interest-at-loan-inception a 'form of usury ... prohibited in Shariah.' TRUST 'high' (numbered/dated PRIMARY OIC resolution verified verbatim via two fetches + an independent second source converging on the same session, date and two-limb ruling; sole caveat = read in the IIFA site's English translation, not the original binding Arabic). DELIBERATELY DROPPED per no-fab: (a) the OIC Bank-Deposits resolution No. 86 (3/9) and any later resolution on contemporary instruments / organised tawarruq (No. 179) — surfaced in the WebSearch summary but NOT fetched/verified verbatim this run, so not quoted; (b) any madhab-by-madhab breakdown; (c) any Qur'an/hadith number (the 'Allah has permitted trade and forbidden riba' contrast is paraphrased as the well-known Qur'anic theme underlying clause Second, not asserted with a verse number); (d) any market/AUM/named-bank figure. FRESHNESS-HONEST: a 1985 resolution + a definitional confirmation — nothing time-sensitive; the resolution's date is stated explicitly. JSON-only per the established article convention (content/articles/*.json feed app/lib/corpus.ts via readdirSync + the /corpus stats badge + Phase-2 retrieval; NOT rendered as individual routed cards), so no SourceCard/route/href added and internal-link integrity is unaffected. Articles 65->66. NEXT candidate: another fetchable-verbatim IIFA/OIC resolution now that TWO have been landed cleanly — strong options are the Bank-Deposits resolution No. 86 (3/9) (current accounts as qard/loans) or the organised-tawarruq resolution No. 179 (which would give the existing tawarruq entry a PRIMARY anchor) — each still needing its own two-source-verifiable pair first; or URF-vs-SHART (custom vs stipulated condition) as the remaining classical-usul contrast. PUNCH-LIST FULLY TICKED; build/lint to be confirmed green this run; this entry advances the sole live corpus lever AND lands the cornerstone primary ruling the whole corpus presupposed.

Topics

islamic-financeribariba-al-jahiliyyahbank-interestusuryprohibition-of-ribaoicorganisation-of-islamic-cooperationinternational-islamic-fiqh-academyiifafiqh-academyresolution-10primary-sourcecollective-ijtihadfatwashariah-rulingconventional-bankingmortgageloan-at-interesttrade-versus-ribabay-versus-ribamurabahaijaramusharakahdiminishing-musharakahsalamistisnashariah-compliant-alternativecommunal-obligationfaith-and-realitysubstance-over-formjeddah-1985

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